REG - Tracsis PLC - Trading Update

TracsisAnnouncement

21/08/2018 07:05

RNS Number : 3426Y
Tracsis PLC
21 August 2018
 


21 August 2018
Tracsis plc
("Tracsis" or the "Group")
 
Trading update
 
Tracsis plc, a leading provider of software and services for the traffic data and transportation industry, is pleased to provide the following trading update for the year ended 31 July 2018.
Group trading for the year has been strong. Revenues for the year were ahead of market expectations at c. £40m (2017: £34.5m) with positive momentum experienced throughout all parts of the Group.  EBITDA and Adjusted Profit are also expected to be ahead of market expectations and also ahead of the previous year (2017: EBITDA £8.5m, Adjusted Profit £7.7m).
At 31 July 2018, cash balances remained strong at c. £22m (2017: £15.4m), which once again reflects excellent cash generation in the year. The Group remains debt free.
The Board is pleased with the continued growth and progress made during the year. Notable highlights within our Rail Technology & Services Division include the acquisition of Travel Compensation Services Limited, the ongoing delivery of a major software implementation at a major UK Train Operating Company, and solid trading within our MPEC and Ontrac subsidiaries.  Taken as a whole, the Rail Technology & Services Division (i.e. all software, RCM and professional services) has performed well and continues to work on multiple large pipeline opportunities which we hope to secure in the coming year that will pave the way for further organic growth.
Our Traffic & Data Services Division also performed well in the year with a typically busy summer season, the development of new revenue streams for our Passenger Counts business, and the renewal of a major multi-year contract for traffic analysis across the national road network.  We also began to use our Machine Learning 'Felicity' software to support automated video analytics and in doing so further cemented the relationship with our investee company Vivacity Labs.  Due to a combination of the above, coupled with a general improvement in operational efficiency and effectiveness, this Division is expected to show enhanced profit margin when compared to last year which is a trend we expect to continue.
The Group remains well positioned for further growth as we enter the new financial year, with a good pipeline of organic sales opportunities, M&A prospects and positive industry growth drivers.
Full Year results will be announced to the market in November 2018.
 
Enquiries:
Tracsis plc                                                                                                                                             Tel: 0845 125 9162
John McArthur, CEO
Max Cawthra, CFO
finnCap Ltd                                                                                                                                           Tel: 020 7220 0500
Christopher Raggett/Scott Mathieson, Corporate Finance
Andrew Burdis, ECM
The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Notes to editors: 
§The Group specialises in solving a variety of data capture, reporting and resource optimisation problems along with the provision of a range of associated professional services.
§Tracsis' products and services are used to increase efficiency, reduce cost and improve the operational performance and decision making capabilities for clients and customers. 
§The Company offers the following services:
-  Rail Technology & Services: Software and technology led consulting, and remote condition monitoring: Industry strength software that covers a variety of asset classes working alongside consulting and related professional services across the operational and strategic planning horizon, plus technology and reporting for critical infrastructure assets in real time, to identify problems and aid with preventative maintenance.
-  Traffic & Data Services: Collation, analytical services, and event management within traffic and pedestrian rich environments.  The business provides technology and data that is instrumental in the development of 21st century intelligent transport systems and smart cities.
§Tracsis has a blue chip client base which includes all major UK transport owning Groups.  The business also works extensively with Network Rail, the Department of Transport, TfL, multiple local authorities, major outdoor music and sporting events, and a wide variety of large engineering and infrastructure companies.
§The business drives growth both organically and through acquisition and has made ten acquisitions since 2008.
§For more information on Tracsis please visit http://www.tracsis.com
 




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